Externals matter for trading success

Externals Matter For Trading Success http://www.netpicks.com/how-are-your-externals/

Psychology. Methodology. Risk Management. You have no doubt

heard it said that these three variables are key to your trading success. Take one away, the whole thing falls apart

almost like the game Jenga.

The difference is it makes no difference which one you remove...one can do you in. There is another variable though that has an impact that may be more intense than

the three above. Without having this variable nailed down, even with the top three in check, your career is in trouble.

External Conflicts. Those words speak to things outside of ourselves…..things we

may have a hard time in controlling.

Financial Pressure.

This is one of the reasons many people look to trading and oddly enough, this same pressure is the one that causes

them to break their trading rules. The desire to make money causes people

to be lured into bad trades, larger position sizing, and even over trade so

as to not miss any opportunity.

They have more bills than cash at the end of the month and since trading

"seems easy", they give it a shot. The issue is if you are pressured to make $X per month, can you imagine the

stress that can put you under?

You may have certain psychological biases under control such as the "sunk

cost fallacy" but if you are trading because you need to make a bill

payment, you are in trouble.

The other one that I like to look at probably has more intensity than the others and that is relationship issues.

When you start trading, it is a long road you are beginning to travel.

Regardless of the latest marketing hype, trading is not something you will

"get" in a week.

You certainly can understand your trading method, the rules, and the

very important money management.

But being able to implement all of those without hesitation is a totally

other matter

No matter what we attempt to do in life, goals we set, nothing makes it easier to handle than having the support of your family. The down

times are real and it is amazing to have that lighthouse in the storm to pick

you up and make you believe in yourself.

Far too many people who have no experience in what you are attempting

to do, will be the first to give their opinions. Have you heard:

Trading is gambling. Everyone loses at trading. You have to be really smart to trade.

The hardest part of those words is when spoken by someone close to

you. It's hard to remain positive when all you hear is every reason why you

can't succeed.

Maybe it is human nature to speak the negative but the best thing to do is

ignore the negative and go about your training.

Every trader has losing sessions and you will be no exception

(just keep them to a small percentage of your trading account).

Do not thing a string of losses means that they were right!

At the end of the road, although there is no end in trading unless you drain

your account, you will reach a certain goal you set, or you won't. There is no

in-between. You will either be the person that hears from your family how you changed "our lives" or you

will hear "I told you so".

My nephew is a freelance programmer on Elance. For the longest time, his spouse (including her family) kept

telling him to go back to the warehouse.

It was very difficult for him to remain positive while those that should be supportive, were anything but that. Once he started making money, her tone changed. Even better, when he

was offered a technician job at a good rate of pay, she told him he will do much better on the current path.

You do not want to head to your office for your trading session with your partner

yapping in your ear to "get serious".

You want support.

Ever hear those that succeed at sports, the arts or anything actually...always

thanking their partner?

You bet you do because the support of those close to you is crucial to your

success. Without it, your journey will be made more difficult in a career that

already is difficult to succeed at.

How to fix that? Nobody can really tell you as every relationship dynamic is

different. I have no suggestions. If you already have the support, great! If not,

you must find a way to get your partner on your team.

Sometimes success is the only way to get them on board but the flip side is, without their support, trading success

may never materialize.